Pension/savings/benefits

xylophone

 Given your age you are probably in the new state pension, you need 35 qualifying years to get the full new state pension

Given his age. he is in the transitional arrangement so that for him, 35 years may or may not be necessary. - he should get a pension forecast.

https://www.gov.uk/check-state-pension

xylophone

OP, what is your situation regarding a pension at your current workplace?

[Deleted User]

tebbins said:

Given your low income and UC situation I would say it's also worth checking your National Insurance record. Given your age you are probably in the new state pension, you need 35 qualifying years to get the full new state pension and it is very much worth checking to see if you're on track for that by 67/68.

Thank you. I have only just started worrying about my future and I am focusing on one thing at a time starting with NI. I have only just realised the importance of NI contributions and have only just checked my NI records. I have 9 incomplete years. I lost a couple of years due to just being short (40 and 47 weeks) but these were going back donkey years so too late to top up. I have filled out a form a few days ago for the time when I was the main carer for our children but the other half was working and claiming child benefit. This was also years ago so I am waiting to hear back from that. 

This has lead me to where I am now, thinking about pensions. 

[Deleted User]

xylophone said:

OP, what is your situation regarding a pension at your current workplace?

I need to get my !!!!!! in it ASAP 

MovingForwards

First things first, don't panic!

(A) Next look at outgoings, excluding pension payments, savings, work related expenses and kid related costs, how much do they add up to each month? 

(B) That's the basic amount you need today if you were retired.

(C) Amount of full state pension per month is £?

C take away B = £? That's the amount you're short or have surplus each month based on today's money.

It's a simple way of looking at things, but can potentially calm nerves.

If you're short, pension payments for 20+ years go towards bridging the gap.

If you've got a surplus, your pension payments allow for treats, day trips, home repairs, upgrades.

As others have said, paying into a pension is fine on UC, you won't get away with sinking every penny in but paying into an employer pension is fine as is contributing to a SIPP (employer is better to prioritise as you get some from the employer paid in too!) 

The Help to Save account is good, due to getting the bonus. Just be mindful when you get to £6k as £6k - £16k sees your benefits reduced on a sliding scale. 
- savings and the £6k - £16k are frequently discussed on the benefits board, further down the forum.

Once you've done A, B and C, come back and update as suggestions can be made.

Edit to add

 https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

It's a nice thread as those of us on lower incomes talk about our pension plans, the last page or two has see a few with big numbers join.

[Deleted User]

xylophone said:

 Given your age you are probably in the new state pension, you need 35 qualifying years to get the full new state pension

Given his age. he is in the transitional arrangement so that for him, 35 years may or may not be necessary. - he should get a pension forecast.

https://www.gov.uk/check-state-pension

I also thought it was 35 years. But having looked at our forecast, it didn’t add up to 35 years. So I am now assuming that this is the transitional arrangement mentioned above. So am I right in thinking I need to work towards the years in my forecast and not the 35 years I originally thought?

eskbanker

Deleted_User said:

xylophone said:

 Given your age you are probably in the new state pension, you need 35 qualifying years to get the full new state pension

Given his age. he is in the transitional arrangement so that for him, 35 years may or may not be necessary. - he should get a pension forecast.

https://www.gov.uk/check-state-pension

I also thought it was 35 years. But having looked at our forecast, it didn’t add up to 35 years. So I am now assuming that this is the transitional arrangement mentioned above. So am I right in thinking I need to work towards the years in my forecast and not the 35 years I originally thought?

Yes, the forecast at the above site gives the definitive position, so you should rely on the number of years stated there to reach the maximum, rather than the 35 years that many perceive as the answer.

[Deleted User]

MovingForwards said:

First things first, don't panic!

Edit to add

 https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

It's a nice thread as those of us on lower incomes talk about our pension plans, the last page or two has see a few with big numbers join.

Thank you for taking the time to write this post and giving useful suggestions. I will definitely pop over and have a read of the thread. 

[Deleted User]

Thank you to everyone whose replied to this post. I am in a calmer state of mind and I have a clearer understanding of what I need to do. 

My to do list is to:
1. Join work pension asap (do not cash in)
2. Open a help to save account (start saving where I can)
3. Open a Sipp (only if I have multiple jobs and can’t join them up)

MEM62

Well done.  That will make a big difference to you retirement.